AICE Economics Chapter Two Vocab

"A payment made by government to producers to reduce the market price"

"Where the relative change in demand or supply is less than the change in price"

"An alternative good"

"A tax that is charged as a given percentage"

"Measurement of responsiveness of the quantity demanded to a change in the price of a product"

"The means of allocating resources in a market economy"

"Change in price is relatively the same as change in quantity demanded given by value of 1"

"Where all that is produced is sold at a given price"

"Quantity of a product that producers are willing and able to sell at different prices"

"Measurement of the responsiveness of the quantity demanded following a change in income"

"A situation where demand and supply are not equal"

"An indirect tax that is fixed per unit purchased"

"One whose demand decreases as income increases"

"The quantity of a product that consumers are willing and able to buy at different times"

"Represents the relationship between the quantity demanded and the price of a product"

"This demand is speculative and not always backed up by the ability to pay"

"When two goods are consumed together"

"Numerical measure of responsiveness of quantity supplied to change in price of the product"

"Measurement of responsiveness of quantity demanded for a product a change in price of another"

"The data from which a demand curve is drawn"

"The price where demand and supply are equal, where the market clears"

"A shift in demand curve due to change in factors other than price of the particular product"

"Demand that is supported by the ability to pay"

"One whose demand increases as income increases"

"Represents the relationship between the quantity supplied and the price of the product"

"The amount that is traded at the equilibrium price"

"When two items are produced together"

"Automatic way in which market allows preferences of consumers to be made known to producers"

"Where a change in price has no effect on the quantity demanded"

"The difference between the price a producer is willing to accept and what is actually paid"

"A situation where there is no tendency for change"

"Numerical measure of responsiveness of a variable following change in another ceteris paribus"

"Where the relative change in demand or supply is greater than the change in price"

"Difference btwn value a consumer places on units consume & payment needed to purchase product"

"A good consumed with another"